Geothermal Development in Japan

JOGMEC Overview
Mission and Activities

1Mission

Secure constant and stable supplies of oil, natural gas and mineral
resources to support industries and citizens in Japan through various
activities relating these resources. In 2012 Geothermal function wasadded to the role of JOGMEC.

Activities
Metals Strategy &Oil & Gas
Exploration, andUpstream
Technology
Investment andDevelopment
Research &Development

Stockpiling

Mine Pollution
Control

Coal Strategy &Exploration, andTechnological
Support

Geothermal
Resources
Development

Geothermal power plants in Japan
Main geothermal power plants inJapan2

Installed Capacity & Electricity GeneratedDecreasing gradually for the past decade.
60（10MW）（１０0GWh）

50.4

53.5 53.4 54.0

40

51.4

5035304025
27.0

30

20

21.4

15

16.1

20

10105.2
3.1

Installed Capacity（10MW）

Electricity Generated（100GWh）

500
1970 1975 1980 1985 1990 1995 2000 2005 2010 14（FY）

Source: TENPES,JOGMEC

Total Installed Capacity: 514MW

Reserve of geothermal resources／Installed capacity3Ø Japan has the world’s third largest reserve of geothermal
resources(23,400MW), however has only 520MW(2.2%) to havebeen developed.
Installed geothermal power capacity35000
30000
25000
20000
15000

Resource

4,000

Installed Capacity(2015)

3,500
3,000
2,5002011

2016

2,000
1,500

10000

1,000

5000

500

02006

0

Source: BP statistic

Geothermal potential area in Japan4

Ø Approximately 80% of energy potential of geothermal is located within theareas of Natural Parks stipulated by Natural Parks Act.
Ø Consequently, Geothermal Power Plants have been developed mainly
outside of these natural parks.
Ø However, after the accident at nuclear power plants in Fukushima, Ministryof Environment issued the guideline which lifted restrictions on drilling atnational parks.
Category of Natural Parks

Potential (MW)Special Protection Zone

7,000MW(29.9%)

Special Zone I

2,600MW

(11.1%)

Special Zone (II & III)7,700MW(32.9%)

Ordinary Zone

1,100MW

(4.7%)

Outside of Natural Parks

5,000MW(21.4%)

Total

23,400MW(100%)

Drillingtoward
Zone I
α%+Accessible
59 %Strategic Energy Plan in Japan

5

Ministry of Economy, Trade and Industry, METI, announced Long-term Energy
Supply and Demand Outlook pursuant to the policies of the Strategic Energy Plan,
what mentioned Geothermal energy would be increased to 1.0-1.1% of the powersupply by FY 2030.
Geothermal
0.3%

25Geothermal
1%100%90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

20

15HydroSolar

10Renewable
Nuclear
Oil
LNG

2013

2030

Coal

Wind

5

Baio0Geothermal

JOGMEC’s Mission■ Our Big Goal

6

ü Promote the activation of domestic geothermal development.

■ Action assignments

ü Financial supports for cost issue
ü Reduce exploration risk (Geological aspect)■ JOGMEC implements three approaches

ü Financial supports(Subsidy, Equity Capital Finance Liability Guarantees)ü Technology development
ü Regional air-borne geophysical survey

n Additional to above approaches, JOGMEC also
active in promotion in order to achieve publicacceptance.

Outlines of Financial Assistance

7Potential Survey

Exploration

EIA

Development

Operation- Geological Survey- Drilling ofInvestigation Well

- Environmental
ImpactAssessment- Drilling ofProduction Well &Reinjection Well

- Commercial
Operation- GeophysicalExploration- Discharge Test

- Structural Boring- Construction, Start-up& Commissioning ofPower Plant

Hatchobaru (Oita Pref.)Resource Risk

Financial Assistance provided by JOGMEC
Subsidy

Equity Capital

Liability Guarantees- Up to 50%~100%* ofnecessary funds(* depends onterms andconditions)- Up to 50% of equity capital- Up to 80% of loan
provided byfinancialinstitutions(JOGMEC is not allowed tobe the largest shareholder.)8

Adopted Projects from FY2012 to FY2016

Currently, more than 50 exploration projects are on the road by electric companies,oil companies, mining companies, local government and other entities.

Subsidized projects (57)

NisekoKamikawa

Amemasu-Dake

Equity Capital projects (1)ToyohaSobetsu/Bankei

Liability Guarantee projects (4)AshoroBiei

YunumaRausuSobetsu/Oukei

Namarikawa

Minamikayabe

Arifukuonsen

Itoigawa/oonoHousenjiUnazuki

Iwakisan-Dake

Hiuchi-Dake
Shimofuro
Hakkouda-Seibu/Jyogakura

Kijiyama-Shitanotai

Hakkouda-Hokusei

Okushiri

Esan
IwakisanKaikeonsen

Musa-Dake

Lake Toya

Yakumocho/Kumaishi

Iwatechinetsu

Wasabizawa-Akinomiya

Matsuo-Hachimantai

Noyahorita

Tateyamaonsen

Hiiji-Dake

Higashihachimantai

Tateyama

Oyasu

Nishizato-Kitazato/Oguni
Isimatsunoen/Oguni
Houreinoyu/Oguni
MInamiaso
Yunotani

Iwatechinetsu

NarukoOhiradani
Sugawara-Binary
Obeno

Ibusuki-shiSakamakionsen

IbusukiShimogamo

BandaiAmihari

Omatsukurayamanannbu

Tsunagionsen

Tsuchiyuonsen-Binary

Higashiizuchoatagawaonsen

Kawamata

NonoyuTanabeshihongu

As of end of Mar, 2017

Wasabizawa Geothermal Power Plant

9

Ø Wasabizawa geothermal power plant ( in Yuzawa city, Akita Pref. ) under construction
and will be commenced to operate with a capacity of 42MW in 2019.
Ø This is the first large-scale project in about twenty years for constructing such a plantwith a capacity of 10,000 kW or more.
Ø JOGMEC provide a liability guarantee for 80% (Approx. 21 billion yen) of the totalloan.
Ø This project is expected to be the herald of booming geothermal development in thenear future.

Regional Potential Survey/

Investigation well for temperature logging

10JOGMEC conducts heli-borne geophysical survey that aims to acquire basic
data for the evaluation of geothermal resources in order to promote
geothermal development start-up.
Air-borne Gravity Gradiometer(AGG)

Time Domain
Electromagnetic Survey(HTEM)

Acceptance of local people
and communities are
required for all activities!!

KamikawaToyohaNiseko【ＮＥＷ】 2017˜Temperature measurement drilling

Nigorikawa

MusadakeTeshikaga
Kamishihoro
Noboribetsu
Hachimantai

Tochigi
Jyoetsu

Yuzawa・Kurikoma
Active volcano

Drill well for the temperature
logging in order to promote
geothermal development start-up.

Kujyu
Oguni
KirishimaCompleted
On going orPlaned
Temperature drillingResearch & Development

11Ø Artificial recharge by river water(EGStechnology)
The research and development to stabilize the geothermal
production by improving evaluation accuracy of fluid flow,and optimizing artificial recharge techniqueThis project is carried out under a collaborative researchwith EPRI (Electric Power Research Institute in USA)Ø Technology for Exploration of Geothermal
Reservoirs
Improvement of exploration accuracy will be expected byapplying the seismic method to image the geothermal
reservoir structure by solving these issues.

Ø Drilling Technology
Develop the PDC* bit cutter and body for geothermal welldrilling and conduct verification test in order to reduce adrilling cost.
*PDC : Polycrystalline Diamond Compact

Yanaizu-nishiyama power plantPromote public acceptance
Promotion at conference, event, and by TV

Special classes for students

12
Source: JOGMEC

Training courses for young engineers

Guideline for geothermal power plant
Educational video making for geothermal development engineer.

Conclusion

13Ø Japanese Government has been trying to expand
the developable area, reduce investment risk andpromote understanding of local people.
⇒ It might create some ideas in order to cope withstakeholders by learning from NZ experiences.
⇒ Appropriate approaches for the promotion isimportant not only for local communities but also local
governments.
Ø These measures are expected to bring new interest
and new investment in geothermal development in
the future.
⇒ New players are now playing important roles forgeothermal developments in Japan.

14Thank you for your attention!
“KAPAI”
Thank you for your attention!